Citing government sources, the report says Israel is awaiting a decision by US President Donald Trump.
It said signs were increasing that Trump had concluded that Tehran was not prepared to accept his conditions for an end to the war.
Yedioth Ahronoth reported that the US and Israel were preparing intensively for a resumption of hostilities.
On Friday, the New York Times reported that the Pentagon was preparing to restart the war because Washington's original aims had not been achieved, in particular regarding Tehran's nuclear program.
The US and Israel were engaged in intense preparations for the possible resumption of attacks against Iran as early as this coming week, according to the Times, citing two Middle East officials.
Israel's N12 television broadcaster reported that Trump was thought likely to convene advisers soon after his return from China to take a decision on resuming hostilities.
N12 said that the Israeli government believes that a decision on a military campaign lasting "days up to weeks" could be taken "very soon."
According to Yedioth Ahronoth, Trump is not believed to be planning a full-scale war aimed at toppling the Iranian government.
Instead, he is thought to be considering limited strikes on power stations and bridges, it said.
Ground operations to seize the key oil export terminals on Kharg Island in the Gulf or to recover an estimated 440 kilograms of uranium enriched to 60 per cent held by Iran are also conceivable, according to the report.
14°C